LGP News - November/December 2014 

There is probably no more emotive payment in my household than when the electricity bill arrives. “How the hell do we manage to waste that much money on electricity?” is the common growl.

I bet it’s the same in your household and I know it is the same in your council!

Interestingly there is much said about the increasing price of electricity in the newspapers. Are you aware that in fact, electricity rates for councils in New South Wales have actually reduced over the last few years?

(Poles and wires charges are a different kettle of fish and worthy of an alternate discussion!)

But back to the price of electricity.

LGP has conducted six electricity tenders over the last five years. Some eighty odd councils have participated in one or more of these processes and some of the results have been quite outstanding with combined savings in excess of $32 million over the period.

Some examples:

• The small council in northern NSW who received a 49% REDUCTION in their electricity costs in 2012 via the LGP contract
• The central west council who reduced their street lighting electricity charges by 22% after having  an increase of more than 10% every two years for the last decade
• The large metro council who reduced their large sites electricity charges by 15% in 2011 and by another 5% in 2013.

Great results I am sure you will agree.

We have had some independent advice that confirms the great work that LGP has done in the electricity space. Some quotes from that report:

“LGP has achieved pricing better than any State Government contract and better than any corporate rate available on the eastern seaboard”

"LGP have harnessed the buying power of a solid group of councils that ensures there is minimal risk for suppliers. Their group is not too big (higher risk) or too small (not really attractive)”

“LGP have a very quick pricing acceptance process for suppliers, again reducing supplier risk”

“The LGP process certainly meets all the legislative requirements necessary for councils, something that is lacking in a lot of other electricity tenders”.

The process that LGP runs for electricity has developed over the years and will continue to do so. Importantly it is now well known to retailers, further decreasing their risk and price.  The process needs to needs to be thorough and yes we agree it can be a burden for councils but this must be done to capture all sites. The good news is we now have data for councils which will simplify the process moving forward. Even so, we are reviewing that process now to ensure future electricity tenders are easier for councils and still provide a great outcome.

Through LGP, councils also have access to industry expertise. We are well aware that not all councils can have staff who are electricity experts. It is a very challenging category to master. The industry expertise available to LGP has a proven record across Australia. Tap into it.

So if you are considering how you manage your electricity costs better, please be in touch.

Electricity rates vary daily but if anyone says they obtain better prices than the LGP contracts, I say someone is telling a porky!

Not for profit (NFP) organisations are also eligible to access LGP contracts.

You may not be aware that organisations in your community are NFPs, given the large number and different types which exist.

Not for profits may include some of the following and more!

• Nursing homes/aged care facilities
• Clubs and associations eg sporting clubs
• Community libraries
• Disability support services
• Training/education organisations.

Please contact Michelle Gavri for more information.

The annual Local Government Procurement Conference, "Procurement - a driver of change" was held on Thursday 20 and Friday 21 November at the Sydney Masonic Centre. 

The conference was well received by attendees with a number of people commenting it was the best conference yet and looking forward to 2015!  Some of the feedback and comments received are below.

97% of respondents rated the conference excellent to very good.

86% of respondents found the information presented extremely to very useful.

"I particularly like the stories councils have about their procurement journeys"

"Great networking opportunity with fellow procurement professionals in local government. Several very interesting presentations. Enjoyable awards dinner."

"Content on strategic procurement and case studies from local councils were excellent."

"Relevant, competent speakers. Great network opportunities. Generous sharing of successes enjoyed and lessons learnt. Brilliantly kept on time."

"A really good event. Well done, looking forward to the next one!"

Eight shortlisted nominees were in the running for the two Local Government Procurement Awards.  The nominations received were of a high calibre.

Congratulations to the winners of the 2014 Local Government Procurement Awards.

Christy Cantwell, Queanbeyan City Council
NSW Local Government New Procurement Professional Award

Bronwyn Challis, Canterbury City Council
NSW Local Government Procurement Professional Award.

As a result of feedback received, LGP has established a new forum topic on our website [Finance Systems (civica, techone and others)] to assist collaboration within councils that use these systems.

Over coming weeks a survey will go to all councils to gauge the level of interest in establishing Special Interest Groups (SIG) to work with these suppliers to address and refine these systems functionality for procurement.

Such topics may include the use of and implementation of category codes, on-line requisitions, purchase card reconciliations and better reporting tools.

If you have any questions or would like more information please contact your LGP Business Manager.

The objective of this module is for council staff to effectively manage relational selling tactics. We have developed a specific training package for council staff that have any form of liaison with a council supplier or suppliers. Specifically, this training is designed to upskill council staff on areas of proper communication and managing relational selling practices. Click here to view the outline. 

Does your council have a contract in place for tyres and batteries?

Local Government Procurement, in conjunction with the National Procurement Network (NPN) is proud to announce the introduction of a contract that not only fulfils the needs of local government in NSW, but also endeavours to support local suppliers…

Heeding the call from councils, LGP set out to establish a panel contract for the Supply, Fitting, Maintenance and Recycling of Tyres, Tubes and Automotive & Marine Batteries to meet the demands of local government.

It is well established that the majority of councils spend in excess of the tender threshold and would have a requirement to tender for these goods and services to comply with legislation. Previously, many councils may have purchased these goods and services from the NSW Government Contract 367 - Tyres and Ancillary services, however due to the non-renewal of this contract LGP has effectively stepped in to fill this void for local government.

Along with the supply of tyres and batteries, this contract has provision for associated services that will meet council’s needs. Pricing has been provided at the local dealer level for all those additional services councils may require.

This contract includes the supply of tyres for passenger vehicles, light commercial vehicles, trucks, plant machinery, agricultural machinery, ATV / motorcycle and Llwn tractors. Additional services such as fitting, balancing, puncture repair and technical / advisory services, along with recycling and disposal of tyres are included.

This contract also includes the supply of automotive, marine, industrial and deep cycle batteries and installation services, along with recycling and disposal of batteries.

It is recommended that councils complete the Notice of Participation for this contract; this will ensure your suppliers are made aware of the new arrangements for your council as well as enabling accurate reporting for the LGP rebate to council.

Further information about this contract is available on the LGP website including pricing schedules and how to access the contract via the e-quoting tool Vendorpanel. Additionally, you can contact your LGP Business Manager for assistance.

LGP advise that the release of the next electricity and natural gas tender process is anticipated for release early next year.

LGP has achieved savings in this in excess of $32m and a participation rate exceeding 100 councils and several not-for-profit organisations.

The categories that will be covered in this new round are supply of electricity for large sites, small sites, unmetered street lighting and green power and supply of natural gas for large sites and small tariff sites.

Previous participants with a contract expiration due shortly, will be invited to renew their contract in this upcoming tender. Councils and other eligible organisations that have not previously participated are warmly invited to join in.

For further information or an explanation of the process involved, please contact LGP’s Category Manager, Marie Talevska or phone 02 8270 8707 or 0477 354 962.

We assisted Goldilocks to negotiate an IT contract that it had tendered for. Fox submitted that it could provide Goldilocks’ requested products and innovative ones too. Fox was also experienced at dealing with councils.

Goldilocks cleverly did many things to make the negotiations successful:

1. The Executive accepted that negotiating the contract was a full time job in itself, so they freed ‘David’ from his other tasks
2. The Executive back-filled other elements of David’s job so that he could focus on this task only
3. The Executive accepted that David, even with all his knowledge and experience could do with some assistance.

The negotiations were very successful. We had 14 separate wins to one win by the Fox.

What could Goldilocks have done differently?

1. Develop the scope more fully
2. Provide for dealing with non compliant tender submissions
3. Fully consider the form of contract to be used
4. Provide for contract negotiation as part of the tender process with the two preferred tenderers.

Goldilocks secured the products it was seeking at reasonable costs and in a shorter time frame than expected.

The moral of the story:

• Get help from the beginning
• Source someone who knows how to negotiate
• Use quality documents to track the negotiations
• Know when to issue legal letters
• Determine your priorities and stand firm.

View the story in full.

For further information contact Prevention Partners NSW

A gram of prevention is worth a kilo of cure

www.preventionpartnersnsw.com
enquiry@preventionpartnersnsw.com
phone: 0438 280 621

The NSW category codes were developed as part of the Procurement Leadership Program supported by LGP. The resulting codes are intended to assist councils in NSW to better understand and report on procurement spend and to collaborate regionally.

The codes are currently under further development incorporating input from a national working group.

If you have any queries regarding the progress please contact your LGP Business Manager.

Tyres, Tubes and Automotive Batteries - Fitting and Service (NPN1.14)

The contract concludes on 30 September 2017 with optional 2 x 12 month extensions. For further information contact your LGP Business Manager. Approved Contractors include:

1. Batteries Plus
2. Beaurepaires
3. R&J Batteries Pty
4. Southern Tyre Services (NSW) Pty Ltd
5. Tyre & Tube Australia (Services) Pty Ltd
6. Tyrepower Limited
7. Tyres4U.

Pending execution of Standing Offer Deeds:

1. Bob Jane Corporation Pty Ltd
2. Bridgestone Australia Ltd
3. Michelin Australia Pty Ltd
4. Toyo Tyre & Rubber Australia Ltd
5. Tyremax Pty Ltd
6. Yokohama Tyre Australia Pty Limited.

For further information Please contact your LGP Business Manager if you have any queries.

EOI11.07-2 Provision of Operating Lease and Finance Services

LGP invites expressions of interest for provision of operating lease and finance services to cover IT, telephony, photocopiers & printers & other office equipment.  These services are required for goods with an aggregate capital cost of approximately $20 million excluding GST.  Short-listed parties will be invited to participate in a selective request for tender process.

EOI status: Submissions close at 2pm on 6 February 2015.

RFQ1.14 Specialist IT&C - R&D and Support Services

LGP is seeking a provider to assist in the development of resources for the RFT with appropriate expertise and industry knowledge. LGP aims to commence work on this project in November 2014. The successful respondent will be excluded from responding to the ensuing RFT or assisting potential tenderers to respond when it is released in 2015. The services of the respondent will conclude upon the completion of the RFT evaluation.

RFQ status: This RFQ is in evaluation.

RFQ1.15 Consulting Services for Energy Sources Specialist

LGP’s request for quotation (RFQ) is to source a suitably qualified and experienced consultant to draft certain tender specification documentation for the upcoming request for tender (RFT) process. The role of the selected consultant(s) may only involve the drafting part of the RFT documentation. Consultant(s) appointed to this RFQ will be excluded from responding to the ensuing Tender on the basis that their involvement in the RFQ process creates a conflict of interest.

RFQ status: This RFQ is in evaluation.

RFQ1.14 Road and Traffic Signage, Associated Hardware and Roadside Products

LGP tendered for the following subcategories and received 14 responses. The categories tendered for were:

• Standard signage
• Non standard signage
• Associated hardware and accessories
• Gabions, mattresses and geosynthetics
• Installation.

Tender  Status: This tender  is in evaluation.

For further information contact the LGP Tender Team.

IT&C Products, Services & Consulting - RFT scheduled for release May 2015

LGP intends to run processes prior to the RFT release to appoint an independent pricing analyst to assist councils utilising the contract and another provider to assist in the development of scope. We anticipate a high volume of responses and therefore a long lead time for the contract release in early 2016. The intent is that there will be a number of high level categories with a greater number of sub categories – incorporating those in the existing contracts (IT hardware, IT&C professional services and telecommunications) and any additional categories.

To assist in the development of the specifications we are seeking to engage an independent consultant for specialist IT&C - R&D and support services. A specialist will be duly appointed and work can commence on the project in December.

In the coming weeks we will be contacting councils via survey for feedback and to ascertain their interest in being involved in the working group. This will entail surveys, interviews and forums. All are welcome no matter what time you can afford.

Retail and Bulk Fuel Purchase Arrangements

Thank you for the overwhelming response we received to the recent  survey.  The aim was to determine wether LGP can create an arrangement for bulk and/or retail fuel that can deliver further value to Local Government that is more competitive than current options. Analysis of results will commence in the New Year.

Corporate Wardrobe (NPN2.11)

The Corporate Wardrobe contract expires 30 June  2015 and has no further extensions. This is a National Procurement Network (NPN) tender. The process to retender will commence shortly.

For further information contact your LGP Business Manager or Angela O’Dea (nee Tesoriero), Category Manager on 0428 289 878.

Advertising Agencies LGP406-2

The second and final option available under the contract has been unanimously agreed to by the panel and the contract has been extended to 31 December 2015.

Advertising - Media Sydney Metropolitan Daily Newspapers, Regional Publications and On-line Advertising LGP106-2

The second and final option available under the contract has been unanimously agreed to by the panel and the contract has been extended to 31 December 2015.

Library Books and Resource Materials LGP507-2

The first option available under the contract has been agreed to by the panel and the contract has been extended to 30 November 2015.

Southern Scene Pty Ltd has withdrawn from the contract and will be not participating in the extension, as their business will cease trading in the near future.

Debt Recovery LGP109-2

The first option available under the contract has been unanimously agreed to by the panel and the contract has been extended to 31 October 2015.

NV Lawyers has updated their pricing schedule, in accordance with the contract anniversary.

IT&C Professional Consulting Services LGP1008-2

Ipera Communications has changed its company name to Vocus Communications. LGP note the ACN and ABN have changed.

Playground, Open Space and Recreational Infrastructure LGP308-2

CRS Creative Recreation Solutions Pty Ltd has updated their pricing schedule to include additional categories.

Greenline Group Pty Ltd has updated their pricing schedule, in accordance with the contract anniversary.

HR Temporary Placements and Associated Services LGP808-2

Manpower Services (Australia) Pty Ltd has updated its pricing schedule to reflect the changes in the Awards applicable to Local Government effective 1 July 2014.

LabourCo Council Services Pty Ltd has changed its company name to Labour Cooperative Group. LGP note the ACN and ABN have changed.

Professional Consulting Services (Engineering, Planning, Environment, Community and Assets) LGP1208-2

WMAwater Pty Ltd changed its company name to WMA Water Pty Ltd. LGP note the ACN and ABN have changed.

AWT Water Pty Ltd changed its company name to Mott Macdonald Australia Pty Ltd. LGP note the ACN and ABN have changed.

Telecommunications LGP407-2

Telstra has added imei Pty Ltd and MSC Mobility Pty Ltd as approved subcontractors.

A special contract extension has been sent to all approved contractors on the panel, extending the contract until a period no later than April 2016.

LGP proposes to merge three contracts in 2015. This would establish a single contract reflecting the IT industry convergence of technologies and enable councils to seek and obtain multifaceted goods and services under one contract, one order and one invoice. 

The panel contracts involved are:

• LGP407-2 Telecommunications; and
• LGP306-2 PCs, Notebooks, Services and Associated Services & Equipment; and
• LGP1008-2 IT&C Professional Services and Associated Products.

Traffic Management Services LGP113

K&D Traffic Management Services Pty Ltd has updated their pricing schedule to reflect the changes in the Awards applicable to Local Government effective of 1 July 2014.

Horticultural, Pest, Pool and Water Management LGP408-2

Living Turf has updated their pricing schedule in accordance with their quarterly pricing opportunity.
Redox Pty Ltd has updated their pricing schedule in accordance with their quarterly pricing opportunity.

Pipes, Fittings & Fixtures and Associated Products and Services LGP908-2

Xylem Water Solutions Pty Ltd has added the category of associated products and services and updated their pricing schedule accordingly.

Multitrode Pty Ltd will be removed from the panel in the near future, as their range of services under the contract is in the process of being transitioned across to Xylem Water Solutions Pty Ltd.  This change is expected to be finalised in January 2015.  Any works in process will still be valid.

Please ensure you refer to the LGP website for the most up to date versions of pricing.

Engineering and Works

• Asphaltic Concrete (AC) Materials & Related Services (LGP213)
• Horticultural, Pest, Pool and Water Management (LGP408-2)
• Pipes, Associated Fixtures, Pumps & Concrete Products (LGP908-2)
• Playground, Open Space and Recreational Infrastructure (LGP308-2)
• Professional Consulting Services (Engineering, Planning, Environment, Community & Assets) LGP1208-2
• Supply of Workwear and Personal Protective Apparel (NPN3.11)
• Traffic Management Services (LGP113).

Fleet and Plant

• Heavy Plant & Equipment (LGP707-3)
• Mobile Garbage Bins, Industrial Containers & Bins, Static Compactors, Associated Products and Services (NPN1.11-2)
• Small Plant & Outdoor Power Equipment (LGP508-2)
• Specialised Truck Bodies & Machines: Waste Collection, Civic Cleaning, Removal and Access (LGP1608-2)
• Trucks for Local Government (Aust.) NPN04-13
• Tyres, Tubes and Automotive Batteries - Fitting and Service (NPN1.14).

Information and Technology

• IT&C Professional Consulting Services (LGP1008-2)
• Microsoft Licensing and Associated Products & Services via Large Account Resellers (LGP108-2)
• Operating Lease Services to cover Information and Communications Technology, Photocopiers, Printers & other Equipment. (LGP1107-2)
• PCs, Notebooks, Servers & Associated Services & Equipment (LGP306-2)
• Telecommunications Services (LGP407-2).

Services

• Corporate Wardrobe (NPN2.11)
• Debt Recovery Services (LGP109-2)
• HR Temporary Placements & Associated Services (LGP808-2)
• Library Books and Resource Materials (LGP507-2)
• Media Sydney Metropolitan Daily Newspapers & On-line Recruitment (LGP106-2) and Advertising Agencies (LGP406-2)
• Office Supplies & Janitorial (including; Heavy Duty Cleaning) & Associated Products (LGP1007-2)
• Radio Frequency Identification (RFID) Systems, Equipment, Associated Products & Services (LGP309-2).

View the LGP website for further detail or contact your local LGP Business Manager.

IT&C Professional Consulting Services - LGP1008-2

NSW city and country councils use 360Pro to publish RFTs/RFQs.  Suppliers log in (for free) to prepare and lodge tenders/quotes.  Users log in to evaluate and report results – all done on-line.  360Pro works happily with eTender boxes, reduces labour costs; and you can be up and running within days.

Contact us directly on 0418 481 494 or at support@langeconsulting.com.au for more details and/or a free demonstration.

IT&C Professional Consulting Services - LGP1008-2

Quest provide street smart IP surveillance solutions to Sydney councils from the suburbs to the beach. A professional consultation will assist in equipping your council with the knowledge to best secure your car parks, city streets, parks and public areas.

Contact 1300 30 44 78 or email sales@questsecuritysolutions.com.au. Alternatively visit out website.

HR Temporary Placements and Associated Services - LGP808-2

Randstad would like to wholeheartedly thank all local government clients we have worked with throughout 2014.  We are proud to have worked with NSW local government since 1993 and we look forward to working with you in 2015.  Wishing you all a very happy Christmas and safe New Year.  

Visit www.randstad.com.au or contact us to reach your local specialist consultant.

The LGP office will close at midday on 24 December
and will reopen on 5 January 2015.

The team at LGP wishes everyone a safe
and happy festive season!

 

If your actions inspire others to dream more,

learn more, do more and become more,

you are a leader.

                                                     John Quincy Adams